Moto Goldmines Limited

Moto Goldmines Limited

August 02, 2005 09:04 ET

Moto Goldmines Limited-Proposed Share Placement

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Aug. 2, 2005) - The directors of Moto Goldmines Limited (TSX:MGL)(ASX:MOE) propose to issue up to 7 million common shares at an issue price of CDN$2.70 each, together with 3.5 million attaching warrants on the basis of one warrant for every two shares issued, to raise CDN$18.9 million. The warrants would be exercisable at CDN$3.25 within two years of issue. The funds would be used for the feasibility study (infill drilling, metallurgical testwork, environmental and infrastructure studies) and proposed mine development program at the Moto gold project and to provide working capital.

The issue of securities is subject to regulatory approval, and the securities to be issued in excess of the Company's 15% placement capacity pursuant to the rules of the Australian Stock Exchange (being approximately 5.5 million securities) will be subject to shareholder approval. It is anticipated the securities will be issued as a combination of units (each unit consisting of one share and one-half of a warrant) and subscription receipts for units. The financing is expected to close on or around August 19th and the shares and warrants underlying the subscription receipts will be issued in late September upon receipt of shareholder approval.

Contact Information

  • Moto Goldmines Limited
    Klaus Eckhof
    President and CEO
    (61 8) 9240 1377
    Moto Goldmines Limited
    Patrick Flint
    Chief Financial Officer
    (61 2) 9212 7999
    Moto Goldmines Limited
    Nick Tintor
    Vice President - Canada
    (416) 777 0001
    Moto Goldmines Limited
    30 Ledgar Road (P.O. Box 717)
    Balcatta Western Australia 6021
    + 61 8 9240 2836
    + 61 8 9240 2406 (FAX)